Amazon hikes pay for warehouse and delivery workers

A worker sorts out parcels in the outbound dock at Amazon fulfillment center in Eastvale, California on Tuesday, Aug. 31, 2021.

The company said it is raising its hourly wages.

Starting pay for front-line employees in the U.S. will be raised to more than $19 per hour in October.

Delivery workers will make between $16 and $26 an hour, according to Amazon. The minimum wage for employees in the U.S. is still fifteen dollars per hour.

Amazon is spending $1 billion on raises over the next year as it looks to attract and retain employees in a tight labor market. It is getting ready to enter what is known as "peak" season, the busiest time of the year for shopping.

Tensions have been growing between Amazon and its front line workers. Wage increases, more paid time off, and changes to productivity expectations have been called for by employees.

Earlier this year, workers at an Amazon warehouse in New York voted to form the company's first U.S. union. There is an election at a site near Albany, New York.

The company said earlier this month it planned to raise pay and benefits for drivers employed by members of its contracted delivery network.

Amazon said it is increasing the amount of money its employees can access whenever they choose and without fees, not just on a schedule.

The president broke down future decisions after the Amazon labor union win.